(Ottawa) Internal government documents give the clearest picture to date of the impact of emergency assistance on federal support for seniors and low-income families.
Thousands of benefit recipients have seen the value of their payments decline because they received the Canadian Emergency Benefit (CEP) or its successor, the Canadian Economic Recovery Benefit (CEP), last year.
Documents show low-income families faced the biggest cuts in support through the Canada Child Benefit (CCB), and federal officials say about 83,000 low-income seniors lost the supplement guaranteed income (GIS).
The documents obtained by The Canadian Press under the Access to Information Act provide a window into early warnings regarding how the financial assistance offered by the recovery benefits following the year pandemic the latter now collects the payments that millions of Canadian households rely on.
The reason is that the Canada Emergency Benefit (CEP) and a trio of other government recovery benefits – the Canadian Economic Stimulus Benefit (CPRE) for unemployed workers, a care benefit for anyone who stayed at home to care for a child or loved one, and sickness benefit for sick workers – were considered income for the purposes of calculating benefit amounts. As incomes increased, the value of benefits decreased.
In a May presentation on the impact on Child Benefit payments, officials from Employment and Social Development Canada wrote that about 15% of aid recipients received the Canada Child Benefit, against 12% of the general population.
According to the presentation, among those expected to experience a decrease in the amount of child benefits, almost three in ten had a total income of less than $ 20,000 and the value of their benefits would decrease more compared to recipients with a higher income. .
Meanwhile, emergency assistance has reduced Guaranteed Income Supplement (GIS) payments for 183,417 low-income seniors, who have lost an average of about $ 3,500 this year, which is less than what. they would have received in pandemic-related benefits last year, as supplement payments are clawed back at the rate of $ 1 for every $ 2 of net income.
GIS recipients can ask the government to calculate their benefits based on income for the current year, not the previous year as is usually the case. Some 5,000 requests had been received by early July, and officials wrote in a briefing note to the minister’s office that they expected “the volume of requests to increase dramatically.”
Meanwhile, Employment and Social Development Canada said that approximately 83,000 seniors who received ECPs or one of the three federal clawbacks were pushed above the income threshold to qualify for GIS. This figure represents just over half of the 157,208 seniors who have exceeded the maximum amount of income, beyond which a person is no longer eligible for the GIS, mentioned in one of the documents.
“Each year, the GIS of thousands of seniors is adjusted to reflect changes in their net income so that it targets those who need it most,” the office of Seniors Minister Kamal Khera said in a statement. .
We realize that adjustment has been difficult for some seniors. We continue to explore how to support those who are trying to make ends meet.
Extract from a press release from the office of the Minister of Seniors, Kamal Khera
There were also more than 130,000 seniors whose payments were suspended because they failed to file their taxes on time, a number that has since dropped to 35,580 after Service Canada made thousands of tax returns. calls to get the missing information.
New Democrat Jenny Kwan said many seniors in her Vancouver constituency worry about having to pay their rent, and those facing language barriers find it difficult to get information on why their payments are being made. have been reduced.
“It’s so stressful for these elderly people,” added Mme Kwan. “I have no doubt in my mind that if the government does not take action, these seniors will end up homeless.”